BlackRock has hired the team of Philippe Benaroya, Chris Wrenn and Gilles Lengaigne to launch a European Infrastructure Debt investment unit based in London. The move is in response to institutional client demand to channel capital into new build infrastructure projects and secondary loan investments asthey search for increased yield in a low interest rate environment.

Benaroya, Wrenn and Lengaigne have worked together as a team for more than 10 years, latterly at Blackstone/GSO. Between them, they have 50 years of sector and credit expertise.

European Infrastructure Debt will focus initially on the needs of financial investors such as insurance companies served by BlackRock’s Financial Institutions Group. The team will help them review opportunities to invest in investment grade infrastructure debt assets in sectors such as transportation, social infrastructure and regulated utilities.

“Investors are looking for increased yield, and to exploit new investment opportunities resulting from global deleveraging,” said Matthew Botein, Head of BlackRock Alternative Investors (BAI). “Alternatives debt financing is a compelling proposition for investors, especially when offered alongside BlackRock’s existing global fixed income, alternative, equity and distribution capabilities.”

He added: “We expect to see a continuation in the robust growth in the infrastructure market. The OECD estimates market size at $3 trillion by 2018 and $50 trillion by 2030, and alternative investments have doubled as a proportion of the institutional investment market in the last seven years.”

Philippe Benaroya joins from Blackstone/GSO as a Managing Director and Co-Head of European Infrastructure Debt. He has 18 years of infrastructure and project finance experience, including membership of the International Infrastructure Committee at insurer Financial Security Assurance.

Chris Wrenn has worked in infrastructure and structured finance for over 25 years and joins BlackRock as a Managing Director and Co-Head of European Infrastructure Debt. He spent 12 years with Financial Security Assurance, engaged primarily with financing infrastructure. Wrenn also held positions with UBS, MBIA-Ambac International and Blackstone/GSO.

Gilles Lengaigne has 10 years’ experience in structured and infrastructure finance and joins BlackRock as a Director in European Infrastructure Debt. Prior to joining BlackRock, Lengaigne was with Blackstone/GSO Capital Partners where he was a Principal of the Infrastructure Debt group.

Botein added: “Hiring this team is an exciting and significant development which helps us develop this burgeoning market and adds a first-mover advantage to BlackRock’s current service provision in Europe. We are delighted to combine Philippe, Chris and Gilles’ expertise in this sector with the global capabilities and reach of BlackRock.”